Home›Forex›Major Pairs›EUR/USD stays near two-month lows around 1.1368

EUR/USD stays near two-month lows around 1.1368

The dollar is supported by Treasury yields trading above 5% on the 10- and 30-year maturities, and markets price a 70.0% chance of another Fed hike in October.

Reported · Written up by our desk · Major Pairs

EUR/USD fell to 1.1368 on Tuesday and remained near two-month lows, with Action Forex citing Fed-tightening expectations as a key driver.

The outlet links the dollar's support to inflation risks tied to expensive energy and uncertainty around US-Iran relations, after reports said Iranian authorities doubt an agreement before the November mid-term elections.

Oil rose on the same developments, while US Treasury yields stayed at multi-year highs, with 10- and 30-year paper trading above 5%, which further supports the dollar and pressures financial conditions.

Action Forex also noted markets estimate a 70.0% likelihood of another Fed rate hike in October, after the Fed raised rates for the first time in three years in September, and cited Lisa Cook warning that near-term AI productivity gains may not be enough to offset price pressures.

Latest closeEUR/USD 1.122 ▼0.3%

More like this

Sources